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Canadians' thirst for wireless data is growing — and so is the cry for unlimited plans

Canada’s telecom market is booming thanks to our unquenchable thirst for wireless data. That leads some customers to question why major Canadian providers aren’t offering a range of cellular plans with unlimited data — like they do in the U.S.

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Data used on smartphones is the 'the growth engine of the wireless space,' analyst says

Canadians don't talk as much as they used to on their mobile phones, but the country's telecom market is still booming thanks to an unquenchable thirst for wireless data.

That leads some customers to question why unlimited wireless data plans are almost non-existent in Canada. Meanwhile, every major U.S. carrier offers one.

"It can get kind of frustrating," says Vian Esterhuizen from Calgary about living with a data cap. "It's something that you have to be aware of and cautious of, and I don't think that's really the right approach."

The explosion of data-rich apps is one reason Canadians are burning up lots of data. (CBC)

According to an IDC Canada report, cellular customers spent $11.9 billion on wireless data in 2016, an increase of 10.7 per cent compared to the previous year.

The market research company predicts that wireless data spending will continue to climb: to $16.7 billion by 2021, a whopping 40 per cent increase from 2016.

"It's the growth engine of the wireless space," says IDC report co-author, Lawrence Surtees. "If they didn't have wireless data, and you just look at wireless voice, the wireless market would be in decline."

Don't call me

As wireless networks improved, Canadians started doing everything on their smartphones, from banking to watching Netflix, says Surtees.

"I don't need to have Netflix on my laptop or cable TV, I can do it on my smartphone."

The IDC analyst adds that there's also been an explosion of data-rich mobile apps — offering everything from weather updates to stock market trackers.

The changing ways people communicate is also driving up data use. Along with texting, mobile users are often turning to messaging features on social media.

"A lot of people I know, I've met them through social media, so I don't even have their phone number," says Esterhuizen. "We would just talk through Facebook or talk through Instagram."

The 29-year-old prefers communicating this way because it allows him to also share links and photos, and he finds it more convenient.

"There's just less of a barrier," he says. "If you're on social media or texting, you can be talking to 20 people if that's your thing."

Esterhuizen's provider — Freedom Mobile — slows down his data speed instead of cutting it off when he hits his 5 GB cap. But the professional photographer believes carriers need to offer truly unlimited plans to meet customer needs in our wireless world.

"It'd be nice to not have to worry about your data no matter where you are."

Could unlimited data lower prices?

According to a 2016 CRTC-commissioned report, Canadians pay some of the highest rates for wireless service compared to other G7 countries and Australia.

The Canadian Wireless Telecommunications Association says that Canadian telecoms offer a wide variety of competitively priced cellular plans and tools to manage their data.

About the Author

Sophia Harris has worked as a CBC video journalist across the country, covering everything from the start of the annual lobster fishery in Yarmouth, N.S., to farming in Saskatchewan. She now has found a good home at the business unit in Toronto. Contact: sophia.harris@cbc.ca

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